Twelve property owners said sewage from the ponds, planned on the 65-acre tract off Julie Lane, could contaminate water wells in the area and decrease property value.

One board member, Louise Poole, said those concerns prompted her to deny the approval. She added that the city should devise a comprehensive sewage disposal method as commissioner-elect Marty Trencher suggested at the meeting. The board voted 4 to 0 to deny the request; board chairman Ted Holtz was absent.

Jay Alpert, vice president of operations for Winter Springs Development Corp., the developer backing the Seminole Utility's request, said his company and Seminole Utilities are considering appealing the decision to the city commission.

''We presented good scientific facts about the matter,'' said Alpert. ''They homeowners presented conjecture. It was not founded on fact.''

Alpert said the ponds, which allow wastewater to trickle into the ground, are necessary to service future homes in the Tuscawilla subdivision.